The author is a Forbes contributor. The opinions expressed are those of the writer.

Loading ...

Loading ...

This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. Subscribe

(Image credit: AFP/Getty Images via @daylife)

Wal-Mart's quarterly profit narrowly disappointed, as fewer shoppers came to U.S. stores. The world's largest retailer also offered a profit forecast that failed to meet expectations.

The Bentonville, Ark.-based company chalked up the lackluster first-quarter figures to delayed tax refunds and crummy weather. "Frankly," says CEO Mike Duke," we had a more difficult quarter than expected when we announced our guidance in February," when the company forecast $1.11 to $1.16 a share in first-quarter earnings. Even then observers felt the numbers were weak.

Wal-Mart's profit, in the end, fell in the middle of that range. Net income was $3.78 billion, $1.14 a share, compared to $3.74 billion, $1.09 a share, a year earlier. Analysts thought Wal-Mart would earn $1.15 a share.

Looking ahead, Wal-Mart expects to earn $1.22 to $1.27 a share in the second quarter, beneath analysts' forecast for $1.29.

Sales rose 1% to $113.45 billion, below the expected $116.29 billion.

Same-store sales, a key metric for retailers, dropped by 1.4% at Wal-Mart stores, a signal that price cuts on groceries and other every-day items haven't been enough to keep shoppers interested. It was the first decrease in same-store sales in more than a year. Wal-Mart's target customer is hit especially hard by the nation's continued economic uncertainty with high unemployment and increased payroll taxes.

Other retailers expressed similar sentiments about the first-quarter. , the second largest U.S. discount retailer, blamed cold weather for weaker than expected figures. Costco, another chief rival, hasn't made any comments. Wal-Mart also competes with chains like and Family Dollar Store, and the company is actually creating smaller stores that will directly target the dollar stores.

Remember that an Wal-Mart internal memo that labelled February's sales as a "total disaster" found its way into News' hands, so none of this should be a huge shock.